Live Updates > Live Update Details
2026-09-18 18:54:09
[US Treasuries Reverse and Weaken in European Sessions, Yen Under Significant Pressure] ⑴ Bonds rebounded during the Asian session due to lower oil prices, but buying interest seemed to evaporate during the European session, with German bonds turning downwards. ⑵ Traders said that overseas accounts had good buying interest in medium-term bonds during the market rebound, but German bonds only recovered slightly from their lows. Strong German producer prices and UK retail sales, coupled with market speculation that Italy will conduct its next syndicated loan issuance next week, put some pressure on German bonds. ⑶ Trading volume was good. As of 6:15 a.m. ET, approximately 393,000 contracts were traded in the 10-year contract. The December contract traded between 106-02 and 106-11.5, last quoted at 106-02.5. ⑷ German bonds fell about 0.25 points from the settlement price, 10-year Italian government bond futures fell about 0.33 points, and 10-year French government bond futures fell nearly 0.5 points. Italy initially performed slightly worse but was subsequently overtaken by France. (5) 10-year yields showed Italian bonds were more than 4 basis points higher than the benchmark, French bonds were about 5 basis points higher, and German bonds were about 2.5 basis points higher. The spread between 10-year and German bond yields narrowed by nearly 1.5 basis points from the European close. (6) West Texas Intermediate crude oil fell more than $1 to about $100.77, but recovered from the earlier low of about $99.39 and did not test Thursday's low of about $99.10. (7) The S&P 500 rose slightly by more than 10 points, about 0.2%, Nasdaq futures rose by about 0.5%, the Euro Stoxx 50 fell by about 0.4%, after the Nikkei rose by about 1.4% and the CSI 300 rebounded by about 1.0%. (8) The US dollar rebounded again, with the dollar index rising to about 100.43, testing the high of about 100.46 on July 31. The yen was sold off heavily, with the dollar rising to about 157.94 against the yen. The market seemed disappointed that the Bank of Japan's 25 basis point rate hike was not hawkish enough. The euro and the pound were basically flat.
